Ardent Health, Inc. (ARDT) vs Surgery Partners, Inc. (SGRY)

Ardent Health, Inc. and Surgery Partners, Inc. are both Medical Care Facilities companies. Surgery Partners, Inc. is the larger, with a market value of $1.9B against $1.5B — 1.3× the size. Surgery Partners, Inc. has negative trailing earnings, so its P/E is not meaningful; Ardent Health, Inc. trades at 19.2×. Surgery Partners, Inc. grew revenue faster over the last twelve months: 3.99% against 3.34%. Ardent Health, Inc. has the higher net margin (1.22% vs −2.63%) and the higher return on invested capital (7.59% vs 3.61%). Across the 19 metrics below, Ardent Health, Inc. leads on 14 and Surgery Partners, Inc. on 5.

Valuation

Metric ARDT SGRY Medical Care Facilities median
P/E 19.16 n/m 19.16
P/S 0.23 0.55 0.90
P/B 0.86 0.60 2.91
Price to free cash flow 4.90 9.69 12.62
EV/EBITDA 4.39 9.24 10.06
EV/Sales 0.29 1.60 1.35
Earnings yield 5.22% (4.86%) 2.30%
Free cash flow yield 20.41% 10.32% 4.14%

Profitability

Metric ARDT SGRY Medical Care Facilities median
Gross margin 100.00% 22.51% 30.78%
Operating margin 4.03% 12.06% 5.74%
Net margin 1.22% (2.63%) 2.32%
Free cash flow margin 4.76% 5.69% 5.46%
Return on equity 4.61% (2.83%) 8.76%
Return on assets 1.52% (1.11%) 2.18%
Return on invested capital 7.59% 3.61% 5.40%

Growth

Metric ARDT SGRY Medical Care Facilities median
Revenue growth (TTM) 3.34% 3.99% 7.12%
EPS growth (last fiscal year) (39.24%) 54.14% —
Revenue growth, 5-year CAGR — 12.21% 9.58%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric ARDT SGRY Medical Care Facilities median
Debt to equity 0.63 1.21 0.30
Current ratio 2.10 1.95 1.22
Net debt to EBITDA 0.80 5.88 1.32

Dividend

Metric ARDT SGRY Medical Care Facilities median
Dividend yield — — 0.85%
Payout ratio — 0.00 0.00

Size

Metric ARDT SGRY Medical Care Facilities median
Market cap 1.48b 1.86b 1.34b

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